A week in the crypto market is always eventful, and our weekly news digest is here to help you understand the movements inside the agitated African cryptobubble. Up in the north, Morocco’s initiative to start planning regulations to embrace crypto after years of banning the practice is under the spotlight. Down in South Africa, the first-ever crypto water token has been created. Scroll down to check the details of this week’s top news and get informed!
Why is Morocco walking back on its crypto ban?
Morocco was a big name in last week’s News Digest due to the Central Bank of Morocco’s recent announcement regarding implementing a regulatory framework to introduce Bitcoin to its national economy. Bitcoins and other cryptocurrencies have been banned in the country since 2017, so what has caused the big shift in attitude? Last week’s announcement made Morocco the first country in North Africa to officially make movements toward regulating crypto adoption. A report published by Triple A at the beginning of this year showed that almost 3% of Morocco’s population are crypto owners, despite the ban. Although the number is considerably low compared to other nations in Southern Africa, when it comes to population percentage, it is enough to make the country among the top 50 holders of crypto assets. This overall scenario and the fact that Egypt has also shown solid intentions to try out the legalization of crypto officially backed up by its Muslim government might have encouraged Moroccan authorities to do the same. We will keep watching!
Down the south, where cryptocurrencies are considerably more popular, South Africa keeps making crypto progress. A DeFi water finance company called H20 Water Securities, based in the country, made a groundbreaking launch this past week and announced the first crypto water token to hit the market of cryptocurrencies. The company’s initiative was created to solve water security issues with blockchain technology, and the goal is to use the H2ON e-coin to keep gathering resources and capital to support water projects in different locations around the globe. The idea attracted the attention of investors and has already accumulated $150 million in investments from the digital asset investment firm GEM digital. The company is well-known in the investment sector for its movements toward tokens that have already been listed on at least 30 exchange platforms in different countries.
South Africa‘s crypto exchange for institutions has arrived
And this is not the only good news from South Africa this week. The country’s largest prime crypto broker, OVEX, has identified the need for a platform that also adds convenience to crypto users who handle high net worth assets and institutions constantly moving around the crypto market and launched a service that can fit the needs of this niche. OVEX’s new crypto exchange service is projected to secure large crypto exchanges that might be red flagged on other platforms due to the extensive need for authentications and verification processes for complex quantities. Jon Ovadia, CEO of OVEX, claims that the company has reliable balance sheet technology and is prepared to handle transactions with deep liquidity. The growing popularity of crypto assets at an institutional level and the surging number of users looking to grow their wealth with crypto encouraged OVEX to deliver a service that can assist clients who have the potential to boost their return rates.
Central Africa Rolls Out Sango Coin Amid Transparency, Credibility Worries
In the Central African Republic, the Sango initiative keeps growing despite the controversies that have popped up since its announcement. CAR’s investment in the Sango coin has triggered discussions regarding the readiness of the country to guarantee the credibility of this new financial alternative, but President Touadera keeps going public to clarify his intentions with it. During the official Sango launch event held online last week, Touadera talked about his ambitious plan to create a legacy that future generations of the country can benefit from. He also shared his intentions to empower young citizens of his country with knowledge and hands-on opportunities to understand how new technologies are impacting our present and will continue to impact our future. He also clarified that the Sango Coin would add more convenience to investments, exchanges, and purchases involving other African nations. The ultimate goal for Touadera’s new Sango hub is to solve the gap in the banking industry that currently does not support more than 55% of CAR’s population.
CAR’s ongoing journey towards crypto adoption is not a unique phenomenon in the African continent. In the past two years, different sub-Saharan economies have made movements to slowly embrace the reality of cryptocurrencies, and central banks have been gathering efforts to explore the possibilities they may bring to their national economies. Several sub-Saharan central banks have already expressed interest in adopting CBDCs, especially since Nigeria - Africa’s top nation when it comes to crypto adoption - introduced the e-version of the Nigerian Naira. Although African countries have different ways, strategies, and rhythms to move their economies towards crypto, all of them can benefit from the inclusion that CBDCs can bring and the simplicity they may add to the way citizens administer their financial lives. Ghana, Namibia, South Africa, Zimbabwe, Madagascar, Mauritius, Rwanda, Kenya, and Uganda are already exploring central bank digital currencies to strengthen their financial services and payment systems. We hope the list keeps growing!
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